Staff Report Item 10
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Leo Kim, Director of Power Supply
SUBJECT: Adopt Resolution No. OB-2026-06 approving and authorizing the CEO to execute an amendment to the power purchase agreement (PPA) with ORNI 50, LLC for the Mammoth Casa Diablo IV Geothermal Project as well as any necessary ancillary documents to extend the term five additional years to 2037 and to increase the Not-to-Exceed amount by $28,800,000 for a total term of fifteen years and a total not to exceed amount of $70,300,000 DATE: February 25, 2026
RECOMMENDATION:
Staff recommend Board adopt Resolution No. OB-2026-06 approving and authorizing the CEO to execute an Amendment to the power purchase agreement (PPA) with ORNI 50, LLC for the Mammoth Casa Diablo IV Geothermal Project as well as any necessary ancillary documents to extend the term five additional years to 2027 and the Not-to-Exceed amount by $28,800,000 for a total term of fifteen years and a total not to exceed amount of $70,300,000.
BACKGROUND:
In January 2020, the Operations Board approved the PPA for 7MW of advanced geothermal generation from the Mammoth Casa Diablo IV Geothermal Project, which was the first new geothermal project developed in California in 30 years. The project’s total output is split between three different offtaker, including 7 MW being delivered to Silicon Valley Clean Energy (SVCE) and 16 MW procured by municipal power entities.
The Project is a state-of-the-art “binary” closed-loop design which means no water is used for cooling.
The Project uses low temperature geothermal water to vaporize a secondary low-boiling-point fluid to drive turbines to maximize efficiency without needing steam. This advanced geothermal technology has no greenhouse gas emissions and produces reliable, baseload, carbon-free electricity.
The Project is located just outside Mammoth Lakes, California within Mono County and achieved Commercial Operation on July 14, 2022.
Ormat Technologies, Inc. (“Ormat”) has over five decades of experience designing, building, owning and operating geothermal generation plants.
DISCUSSION/ANALYSIS:
The California Public Utilities Commission (CPUC) continues to identify a critical need for geothermal generation in support of California’s pursuit of its SB100 goals. Adding an additional .5 MW of capacity and five additional years to the existing Mammoth Casa Diablo PPA incrementally helps 3CE meet its portfolio and compliance obligations.
Baseload Renewables Continue to be Critical for California Renewable and Reliability Goals.
As part of the CPUC’s 2021 Mid Term Reliability Procurement Order, the 1GW of “clean firm” resources were identified to come online between 2023 and 2026. The CPUC’s order was further supplemented based on the 2022 Integrated Energy Polic Report (IEPR) forecast to increase the total capacity required (inclusive of both long lead time resources and “clean firm” resources).
The CPUC’s further reliability analysis, relying on an aggressive 2024 IEPR forecast (driven largely by electrification and data center uncertainty), determined “there is likely to be a reliability shortfall of approximately 6,000 MW by 2032.” While the CPUC’s pending procurement order does not require the same “clean firm” attributes of new generation, it does continue to require zero emitting or RPS eligibility and includes a 50 percent cap on procured capacity – the result of which is to prefer baseload renewables, like geothermal.
In State Geothermal is Limited
Despite the identified need for geothermal, emerging technologies for both conventional and enhanced geothermal systems, high capital costs, constrained deliverability, and long permitting days continue to slow new development and limit availability for new projects. 3CE continues to plan and execute on a diverse clean and renewable portfolio, that includes two operating geothermal facilities and a proportional PPA share of a project through CCPower (a joint powers authority comprised of nine CCAs) as well as a portfolio of potential projects within California and Nevada. Moreover, through CCPower, 3CE is engaged in three memorandums of understanding (MOUs) to reduce permitting barriers and promote the further development of in-state geothermal.
Consideration of Amendment
The CPUC’s procurement orders have significantly increased demand for geothermal generation and focused the increased demand for delivery within a very narrow window of time. At the same time, the already limited available capacity has been constrained by the above-mentioned high cost and lengthy
permitting delays. Despite several solicitations, 3CE has not received firm offers for new geothermal development.
In December 2025, Seller represented it was seeking to extend the existing PPA agreement by five years and increase the contract capacity by 0.5 MW. 3CE IRP modeling shows Geothermal is a cost-effective way to meet 3CE’s compliance requirements and provides reliability through baseload – PCC1 eligible— renewable energy.
To reduce the cost impacts of the increased geothermal market price for the additional capacity and term, staff negotiated new blended price beginning in October 2026. The proposed amendment would deliver additional value to 3CE’s portfolio by extending and adding additional baseload renewable capacity through 2037 and providing a more cost-effective portfolio fit than other available technologies.
Overview of the Proposed Amendment
Original PPA Proposed Amendment
Counterparty ORNI 50, LLC No change
Parent Company Ormat Technologies, Inc. No change
Product Bucket 1 (PCC1) Renewable
Energy, baseload geothermal
No change
Delivery Term 10 years
July 14, 2022 through
July 13, 2032
15 years
July 14, 2022 through July 13, 2037
Contract Capacity 7 MW 7.5 MW
Location Mono County, California No change
Percentage of Retail Load
Served
~0.9% No change
Not to Exceed $41,500,000 $70,300,000
FISCAL IMPACT:
The fiscal impact of the proposed amendment for the Mammoth Casa Diablo geothermal extension will increase the NTE from $41.5 million to $70.3 million as the term increases from 10 years to 15 years.
This is cost-effective way to improve our portfolio position through the extension term.
CONCLUSION:
Approval of the amendment of the Mammoth Casa Diablo PPA will meet a little under 1% of 3CE’s retail load but will provide critical resource adequacy benefits and provide additional value to 3CE’s customers.
ATTACHMENT(S):
1. Resolution No OB-2026-06
2. Proposed Amendment to Original PPA (Redacted)
3. Original PPA between Ormat and 3CE (Redacted)
RESOLUTION NO. OB-2026-06
A RESOLUTION OF THE CENTRAL COAST COMMUNITY ENERGY OPERATIONS BOARD OF
DIRECTORS AUTHORIZING AND APPROVING THE CHIEF EXECUTIVE OFFICER TO EXECUTE AN AMENDMENT TO THE POWER PURCHASE AGREEMENT WITH ORNI 50, LLC TO INCREASE THE CONTRACTED VOLUME TO 7.5 MW EXTEND THE DELIVERY TERM AN
ADDITIONAL FIVE YEARS AND INCREASE THE TOTAL NOT-TO-EXCEED AMOUNT FOR A TOTAL DELIVERY TERM OFOF 15 YEARS AND ANOT TO EXCEED AMOUNT OF $70,300,000.
WHEREAS, Central Coast Community Energy (3CE) is a Joint Powers Authority (JPA) established and operated pursuant to California Government Code sections 6500 et seq. to study, promote, develop, conduct, operate, and manage energy programs in the California Central Coast region of Santa Cruz, Monterey, San Benito, Santa Barbara, and San Luis Obispo Counties; and WHEREAS, pursuant to California Public Utilities Code Section 366.2, a community choice aggregator is solely responsible for all generation procurement activities on behalf its customers, and must offer the opportunity to purchase electricity to all residential customers within its jurisdiction; and
WHEREAS, 3CE is purchasing baseload renewable energy, Resource Adequacy, and related products and services (the “Products”) to supply for a public purpose, to provide power portfolio benefits and maintain price certainty for its customers across the Central Coast; and WHEREAS, the California Public Utilities Commission’s Integrated Resource Plan shortfall analysis projects a shortfall of 6,000MW in 2032 and has identified a need for additional reliable zero-emitting and RPS eligible resources, like geothermal be brought online.
WHEREAS, 3CE has engaged in negotiations and seeks to amend a Renewable Power Purchase Agreements with ORNI 50, LLC, to extend the Delivery Term by 5 years and to procure an additional
0.5 MW for a total of 7.5 MW of geothermal generation, based on project’s desirable attributes, pricing, and terms; and
WHEREAS, the Mammoth Casa Diablo project will contribute toward the regulatory requirements set forth by the California Public Utilities Commission to ensure greater reliability for the California grid, to serve 3CE’s customers’ electrical needs, and maintain 3CE’s Board Goals of 100% Clean and Renewable beyond 2030; and
WHEREAS, the Operations Board delegates authority to the Chief Executive Officer to execute an Agreement in an amount not to exceed $70.3 million to purchase baseload geothermal generation and related products; and
WHEREAS, the Board’s authorization to the Chief Executive Officer to execute the Agreement is contingent on ORNI 50’s agreement to terms consistent with those presented to the Operations Board.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Operations Board of Directors approves and authorizes the Chief Executive Officer to execute the First Amendment to the Power Purchase Agreement with ORNI 50, LLC inclusive of terms consistent with those presented, in a form approved by the General Counsel and for a delivery term of up to fifteen years, in an amount not to exceed $70,300,000 for the Mammoth Casa Diablo Geothermal Project.
PASSED AND ADOPTED this 25th Day of February 2026, by the following vote:
AYES:
NOES:
ABSENT:
__________________________________
Chair, Matt Huffaker
Attest:
__________________________________
Board Clerk, Heather Vowell
Execution Version
FIRST AMENDMENT TO RENEWABLE POWER PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO RENEWABLE POWER PURCHASE AGREEMENT (“First Amendment”), dated as of February [•], 2026 (“First Amendment Effective Date”), is by and between ORNI 50 LLC, a Delaware limited liability company (“Seller”), and Central Coast Community Energy (f/k/a Monterey Bay Community Power Authority), a California joint powers authority (“Buyer”). Each of Seller and Buyer are referred to herein individually as a “Party” and collectively as the “Parties.” Capitalized terms used but not defined herein have the meanings assigned to them in the PPA (as defined below).
RECITALS
A. The Parties entered into that certain Renewable Power Purchase Agreement, dated January 8, 2020 (the “PPA”).
B. The Parties desire to amend the PPA to extend the Delivery Term by five (5) years at a new Contract Price that would take effect on October 1, 2026, to increase the Contract Capacity by one half (0.5) MW as of October 1, 2026, to make certain related changes as set forth herein, and to update Exhibit N of the PPA.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, the Parties agree as follows:
SECTION 1. Effectiveness of Amendments. The amendments set forth in Section 2 are effective as of the First Amendment Effective Date.
SECTION 2. Amendments.
a. In the Cover Sheet to the PPA, the “Description of Facility” is amended to replace “30 MW” with “31 MW”.
b. The Cover Sheet to the PPA is amended to delete the text “Delivery Term: Ten (10) Contract Years.” in its entirety and to replace such text with the following text: “Delivery Term: Fifteen (15) Contract Years.”
c. The Cover Sheet to the PPA is amended to delete the table shown under “Expected Energy” in its entirety and to replace such table with the following table:
Contract Year Expected Energy (MWh)
1 2
3 4
5 6
7 8
9 10
11
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Street: 6884 Sierra Center Parkway
City: Reno, Nevada 89511
Attn: CEO
Phone: (775) 356-9029
Facsimile: (775) 356-039
Email: [email protected]
With a copy to:
Street: 6884 Sierra Center Parkway
City: Reno, Nevada 89511
Attn: Asset Manager
Phone: (775) 356-9029
Facsimile: (775) 356-9039
Email: [email protected]
k. Exhibit N as it pertains to Buyer is deleted in its entirety and replaced with the following:
Central Coast Community Energy (“Buyer”)
All Notices:
70 Garden Court, Suite 300
Monterey, CA 93940
Attn: Director of Power Supply Resources
Phone: (805) 803-1016
Email: [email protected]
Reference Numbers:
Duns: 080977851
Federal Tax ID Number: 82-2386705
Invoices:
Attn: Accounts Payable-Power Services
Phone: (831) 641-7218
Email: [email protected]
Scheduling:
Attn: The Energy Authority
Phone: (425) 460-1110
Email: [email protected]
Tel: (Real Time Desk): (425) 460-1118
-or-Attn: Day-Ahead Scheduling
Phone: (425) 460-1118
Email: [email protected]
Confirmations:
Attn: Manager of Energy Trading
Phone: (831) 641-7203
Email: [email protected]
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Payments:
Attn: Chief Financial Officer
Phone: (831) 641-7210
Email: [email protected]
Wire Transfer:
Bank: River City Bank
ABA: 121133416
Account: 9981454362
With additional Notices of an Event of Default to:
Central Coast Community Energy
Attn: General Counsel
Phone: (831) 595-7743
Email: [email protected]
and to:
Attn: Deputy General Counsel
Phone: (831) 215-1740
Email: [email protected]
and to:
Attn: Energy Contracts and Compliance Manager
Email: [email protected]
With a copy to:
Hall Energy Law PC
Attn: Stephen Hall
Phone: (503) 313-0755
Email: [email protected]
Emergency Contact:
Attn: Director of Power Supply Resources
Phone: (805) 803-1016
Email: [email protected]
SECTION 3. Performance Security Increase. No later than October 1, 2026, in connection with the Contract Capacity increase from 7 MW to 7.5 MW, Seller shall SECTION 4. Limited Assignment Agreements. Pursuant to Section 19.11 (Further Assurances), Seller agrees to work in good faith with Buyer to negotiate and enter into requested amendments to the Parties’ existing limited assignment agreements, with such agreement and execution not to be unreasonably withheld, conditioned or delayed. Buyer shall be responsible for Seller’s reasonable costs and expenses associated with the review, execution and delivery of such requested amendments, including, without limitation, reasonable attorneys’ fees. Buyer shall pay such amounts promptly upon Seller’s delivery of an invoice therefor, together with documentation reasonably supporting the invoiced amount.
SECTION 5. Miscellaneous.
a. Entire Agreement. This First Amendment, together with the PPA as amended by this First Amendment, contains the entire understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, discussions or agreements between the Parties concerning that subject matter, whether written or oral, except as expressly provided herein. b. PPA Not Otherwise Affected. Except as expressly set forth herein, all of the terms and conditions of the PPA are and shall remain in full force and effect and are hereby ratified and confirmed in
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all respects; provided that the event of a conflict between the provisions of this First Amendment and the provisions of the PPA, the provisions of this First Amendment shall control. The execution and delivery of, or acceptance of, this First Amendment and any other documents and instruments in connection herewith by either Party shall not be deemed to create a course of dealing or otherwise create any express or implied duty by it to provide any other or further amendments, consents, or waivers in the future, or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Parties under, the PPA. c. Costs and Expenses. Each Party shall be responsible for any costs and expenses incurred by such Party in connection with the negotiation, preparation, execution and delivery of this First Amendment and any other documents to be delivered in connection herewith. d. Governing Law. This First Amendment and the rights and duties of the Parties hereunder shall be governed and construed, enforced and performed in accordance with the laws of the state of California, without regard to principles of conflicts of Law. To the extent enforceable at such time, each Party waives its respective right to any jury trial with respect to any litigation arising under or in connection with this First Amendment.
e. Interpretation. This First Amendment is the result of negotiations between and has been reviewed by counsel to each of the Parties and is the product of all of the Parties. Accordingly, this First Amendment shall not be construed against either Party merely because of such Party’s involvement in the preparation hereof.
f. Counterparts. This First Amendment may be executed by one or more of the Parties on any number of separate counterparts, by facsimile or electronic mail, and all of said counterparts taken together shall be deemed to constitute one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signatures are physically attached to the same document. A facsimile or portable document format (“.pdf”) signature page shall constitute an original for all purposes hereof.
g. Headings. The Section headings used herein are for convenience of reference only, are not part of this First Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this First Amendment.
h. Severability. Any provision of this First Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition of unenforceability without invalidating the remaining provisions hereof, and any such prohibition of unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The Parties shall, however, use their best endeavors to agree on the replacement of the void, illegal or unenforceable provision(s) with legally acceptable clauses which correspond as closely as possible to the sense and purpose of the affected provision and this First Amendment as a whole. i. Enforceability. This First Amendment shall be enforceable by and binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. [Signature Page Follows]
IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed and delivered as of the First Amendment Effective Date.
ORNI 50 LLC,
a Delaware limited liability company
By:
Name:
Title:
By:
Name:
Title:
Central Coast Community Energy,
a California joint powers authority
By:
Name:
Title:
Approved as to form:
By:
Name:
Title: